Reliance Industries said it would raise Rs 5,000 cr from the debt market by issuing debentures on Wednesday, November 8.
The debentures issued will not be convertible to equity shares and will be sold privately (private placement) without a public offering, RIL added.
Unlike shares, debentures generate a fixed return in the form of interest. But, like debt, they can be traded on exchanges.
They will form the fourth tranche, or D series, of the company’s debentures.
“The net proceeds of the issue will be utilised inter-alia for refinancing of existing borrowings and/or for any other purpose in the ordinary course of business,” it said.
RIL, promoted by Mukesh Ambani, is busy investing trillions of rupees into a new telecom venture known as Reliance Jio, which is expected to see its initial public offer in late 2018 or early 2019.
Confounding analysts, Jio has more or less turned profitable at all levels — operating, pretax and after tax — going by the initial set of numbers released last month.